Introduction to the panel discussion on “The path of a distribution company to an integrated information system”
Enterprise Resource Planning (ERP) systems facilitate better resource utilization by reducing costs and improving management processes. Logistics has become an essential element of many newly defined processes. A good example is the just in time concept. A necessary condition for its implementation is having well-modeled processes and a correctly implemented management information system. However, one cannot count on the efficient implementation of the just in time concept without reliable supply logistics and production logistics that make good use of resources. Without them, we will create costs resulting from stockouts, i.e., losing money on downtime in manufacturing, trade, or service provision, instead of reducing the capital costs tied up in warehouse resources and the maintenance of the warehouses themselves. This is an example of a cost conflict.
Industry leaders use highly advanced information technologies that help reduce costs. Due to the widespread use of ERP, they do not have many opportunities in this area to maintain and deepen their competitive advantage. A new class of information systems creating such opportunities are Customer Relationship Management (CRM) systems. Their goal is to support the acquisition and retention of customers. Achieving this is, in my opinion, a necessary condition for achieving a competitive advantage. Subjective market assessment, rather than evaluating products according to objectively measurable criteria, is the measure of economic success. Well-executed distribution logistics helps achieve this goal. Customers expect products and services that meet their individual expectations, delivered at the desired time, place, and quantity (report of the European Union’s Institute for Prospective Technological Studies). Of course, one of the tasks of marketing is to shape their needs. The concept of logistics-marketing management integrates activities in this area. But ultimately, it is the customer who decides which product or service to buy. The litmus test of their satisfaction is loyalty to the supplier. In previous manufacturing systems, large series were often produced. A good example is the path of the automotive industry from producing only black Model T Fords to modern serial production, where each element is often the subject of an individual order. ERP systems provide particular successes in the case of creating products or services using the scale effect. How difficult this is to achieve is illustrated by the example of computer production. Many computer architectures are configured by hardware manufacturers for the individual needs of the customer. We know how often they still fail, even during the warranty period, to reproduce the delivered configuration, provide service, or offer advice.